No one knows how St. Paul’s new rent control ordinance that puts a 3% cap on rent increases will affect rental property prices or sales. We learn in economics 101 that the solution to high demand is more supply, not price controls. It is the high demand and low supply that are driving housing costs up.
We need to build more housing of all types but for now, rent control may discourage some investors from buying up real estate.
Rent control does not go into effect in St. Paul until next spring. For right now there doesn’t appear to be any impact on prices or sales of multi-family housing that is sold through the NorthstarMLS.
The average days on market for multi-family listings is 31 days and on average the homes sell for a higher amount than the listed price. Like all housing in the area, they sell for slightly less in the winter than in the spring.
I am working on getting some numbers on what percentage of multi-family homes are sold through the MLS. We have and we do sell multi-family such as duplexes, tri-plexes etc. We also help people buy that type of property along with other types of real estate.